New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires – July 28, 2021
Smartphone sales in China declined 13% QoQ in Q2 2021, reaching close to 75 million units, according to Counterpoint’s Monthly Market Pulse Service. The quarter’s sales also dropped 6% YoY, showing that the market was even weaker than last year when the country was hit severely by the pandemic. In fact, the Q2 2021 sales were the lowest second-quarter sales in China since 2012.
Commenting on the overall Chinese smartphone market, Research Analyst Mengmeng Zhang said, “The overall smartphone demand remains weak as the void left by Huawei cannot be filled immediately by other OEMs. Huawei is a strong brand in China and many of its users still retain their Huawei devices instead of switching to other brands. In addition, China’s smartphone market is quite mature, where demand mainly comes from replacement needs. Fueled by promotions during the 618 e-commerce festival, the market rebounded in June from its dip in April and May.”
Commenting on key vendors’ performances, Senior Research Analyst Ethan Qi said, “The market has experienced a reshuffle after the US ban on Huawei. One-time market leader Huawei saw its share decline to 10% in Q2 2021 from 32% in Q2 2020. vivo and OPPO now lead the market with 23% and 21% shares, respectively, followed by Xiaomi and Apple. All leading OEMs benefited from Huawei’s decline and grew their market shares. realme also continued its growth streak in China, surpassing one million unit sales for the first time.”
Smartphone Sales Volume Share of Key OEMs in China
Xiaomi was the fastest-growing key OEM during the quarter. It grew an impressive 70% YoY, accelerating its offline expansion with more stores in lower-tier cities and counties. Xiaomi has also made successful strides in penetrating high-end segments with the Xiaomi 11 Ultra and Xiaomi 11 Pro.
We expect China’s smartphone market to experience further reshuffling in Q3 and become more competitive with the fast recovery of HONOR. After restoring partnerships with suppliers and securing components, HONOR’s sales have started to improve. Its market share stood at 8.4% in June compared to 5.1% in January.
Background:
Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.
Analyst Contacts:
Mengmeng Zhang
Ethan Qi
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